- Five Below is on track to open more than 200 new stores this year.
- It was among the fastest-growing retailers in the US in 2022, alongside Dollar General and TJ Maxx.
- I visited a Five Below store in Maryland to see what exactly the store offers.
What is Five Below, exactly?
That’s what I asked myself when I first started writing about retail several years ago. I’d pass the retailer’s stores in strip malls, but it wasn’t immediately clear by looking at them what they sold. One retail industry analyst described the chain as a “toy store,” but a skim of the company’s website shows that it also has departments for beauty supplies, pet supplies, and clothing.
Complicating matters, the website says that it sells products with “extreme $1-$5 value, plus some incredible finds that go beyond $5.”
And who is Five Below for?
“While our merchandise offering targets the preteen and teen demographics, our stores enjoy universal appeal,” CEO Joel Anderson said on an earnings call in 2015. Both Gen Z as well as their parents, who are themselves millennials and Gen Xers, are Five Below’s target shoppers, according to an investor presentation from May.
One thing is for sure. There are a lot of Five Below stores. The company opened 134 stores in the US last year, and it plans to open more than 200 new locations this year, executives told analysts at Jefferies last month. Right now, it operates about 1,400 stores.
Like dollar stores, Five Below has done well financially as inflation has squeezed consumers’ budgets. Executives told Jefferies that “needs-based categories like candy, food, beverage, travel, and beauty performed well” as inflation remained high. The chain “remains attractive as consumers seek value,” the analysts wrote.
I decided to check out a Five Below location for myself to see where the store fits into the broader retail world.
Are you a Five Below employee with a story idea to share? Reach out to Alex Bitter at [email protected] or via encrypted messaging app Signal at +1-808-854-4501.
Read the full article here